1H FY2019/20Results Briefing

4 November 2019

1H FY19/20Financial Review

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1H19/20 Financial Highlights

• The Group recorded a net profit of $87.6 million for 1H19/20.

• Operating profit at $37.3 million was $15.8 million or 73.5% higher.

• Share of profits of associated and joint venture companies decreased $9.0 million or 14.4% to $53.4 million.

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Summary of Group Results 1H19/20

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Group 1H19/20 1H18/19 Variance

$M $M %

Revenue 512.7 509.0 + 0.7

Expenditure 475.4 487.5 - 2.5

Operating profit 37.3 21.5 + 73.5

Share of profits of JVs & Assoc 53.4 62.4 - 14.4

Provision for taxation (10.0) (8.4) - 19.0

Net profit 87.6 78.5 + 11.6

The Group posted a net profit of $46.0M for the second quarter of FY19/20, $8.0M or 21.1% higher year-on-year; $4.4M or 10.6% higher quarter-on-quarter.

Summary of Group Results 2Q19/20

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Group 2Q19/20 2Q18/19 Variance 1Q19/20 Variance

Y-o-Y Q-o-Q

$M $M % $M %

Revenue 254.6 251.3 + 1.3 258.1 - 1.4

Expenditure 235.0 240.0 - 2.1 240.4 - 2.2

Operating profit 19.6 11.3 + 73.5 17.7 + 10.7

Share of profits of JVs & Assoc 27.4 30.0 - 8.7 26.0 + 5.4

Provision for taxation (5.5) (4.9) - 12.2 (4.5) - 22.2

Net profit 46.0 38.0 + 21.1 41.6 + 10.6

Group Profit for 1H19/20

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S$M

1H18/19

78.5

70.0

0.01H19/20

87.6

+ 9.1

80.0

Group operations

+16.2

100.0

Tax provision

-1.6

-0.4

Exchange differences

90.0

-9.0

Share of profits of

JV & assoc

Non-operating

items & NCI

+3.9

Revenue increased by $3.7M or 0.7%, mainly due to higher airframe and linemaintenance revenue, offset by lower engine and component revenue.

Breakdown of Group Revenue1H19/20

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Group Revenue 1H19/20 1H18/19

$M $M %

Airframe and line maintenance

Airframe overhaul and line

maintenance 456.4 442.6 + 3.1

Fleet management programme 43.9 50.8 - 13.6

500.3 493.4 + 1.4

Engine and component 12.4 15.6 - 20.5

512.7 509.0 + 0.7

Variance

Expenditure was lower by $12.1M or 2.5%, mainly from lower subcontractand material costs.

Group Expenditure1H19/20

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Group Expenditure 1H19/20 1H18/19

$M $M %

Staff costs 248.9 247.5 + 0.6

Material costs 69.2 74.8 - 7.5

Subcontract costs 55.2 61.4 - 10.1

Overheads 102.1 103.8 - 1.6

475.4 487.5 -2.5

Variance

Group’s operating profit in 1H19/20 of $37.3M was $15.8M or 73.5% higher.

Group Operating Profit1H19/20

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Group Operating Profit 1H19/20 1H18/19

$M $M %

Airframe and line maintenance 39.4 22.6 + 74.3

Engine and component (2.1) (1.1) - 90.9

37.3 21.5 + 73.5

Variance

Contributions from the engine and component centres at $55.1M were lowerby $7.0M or 11.3%, with lower share of profits from ESA as it gears up fornew engine capabilities.

Joint Venture and Associated Companies1H19/20

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Share of Profit After Tax 1H19/20 1H18/19

$M $M %

Engine and component

Engine centers 35.7 42.8 - 16.6

Component centers 19.4 19.3 + 0.5

55.1 62.1 - 11.3

Airframe and line maintenance (1.7) 0.3 n.m.

53.4 62.4 - 14.4

Variance

% of non-SIA revenue decreased by 1ppt from 69% in 1H18/19to 68% in 1H19/20.

SIA vs Non-SIA Revenue1H19/20

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SIA Non-SIA

$M $M

SIA Engineering (SIAEC) 272.4 171.4

% of non-SIA work 39%

Subsidiary companies 34.0 66.5

% of non-SIA work 66%

- Engine and component 648.9 1,869.5

- Airframe and line maintenance 38.5 22.3

687.4 1,891.8

% of non-SIA work 73%

Combined Group revenue 993.8 2,129.7

% of non-SIA work 68%

Joint venture & associated companies

Group Balance Sheet

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Sep-19 Mar-19

$M $M

Equity attributable to owners of the parent 1,539.1 1,528.6

Non-controlling interests 34.0 35.4

Total equity 1,573.1 1,564.0

Non-current liabilities 123.2 35.7

1,696.3 1,599.7

Represented by:

Non-current assets 998.3 880.2

Cash 503.5 521.6

Other current assets 438.4 443.4

Current assets 941.9 965.0

Current liabilities (243.9) (245.5)

Net current assets 698.0 719.5

1,696.3 1,599.7

Financial Statistics

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Financial Statistics 1H19/20 1H18/19

Return on shareholders' funds (%) (MAA) 11.2 13.0 - 1.8 ppt

Basic earnings per share (cents) 7.82 7.02 + 11.4 %

Sep-19 Mar-19 Variance

Net asset value per share (cents) 137.4 136.6 + 0.6 %

Variance

Interim dividend to be paid on 22 November 2019

Interim Dividend

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Interim Dividend 1H19/20 1H18/19 Variance

%

Ordinary 3.0 3.0 -

(in cents per share)

1H FY19/20Operational Review

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Line Maintenance

▪ 35 airports in 7 countries

Aircraft & Component Services

▪ 6 hangars in Singapore

▪ 3 hangars in Philippines

Fleet Management

▪ 75 aircraft from 6 airlines

Core Business

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Core Business

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1H 18/19 1H 19/20

75,783

77,797

2.7%

Maintenance Checks at Singapore Base

1HFY19/20 1HFY18/19

‘A’ Checks* 241 223

‘C’ Checks 37 31

* Including ‘A’ checks performed by Line Maintenance at the apron

Maintenance Checks at Clark Base

1HFY19/20 1HFY18/19

‘C’ Checks 23 30

Line Maintenance Aircraft & Component Services

A320

23 aircraft

A320

737

23 aircraft

A330

15 aircraft

Flights handled at Changi Airport

Fleet Management

747

7 aircraft

777

7 aircraft

FMP Fleet: 75 aircraft

Company Initiatives

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Transforming for the Future

Transformation

Investing for the Future

Innovation and Technology

Strategic Partnerships

2017 2018 2019 20202016 2021

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JV Partners

Wholly-Owned

Pratt & Whitney Rolls-Royce

Others

Jamco SafranCebu Collins

GEAirbusBoeing NokScoot

Strategic Partnerships - JV Portfolio

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Airframe and Line Maintenance Engine and Component

Pan Asia Pacific Aviation Services (PAPAS)

Hong Kong 40%

PT JAS Aero-Engineering Services (PT JAES)

Indonesia 49%

United States 100%

SIA Engineering(USA) (SEUS)

Vietnam 49%

Southern Airports Aircraft Maintenance Services (SAAM)

SIA Engineering Japan (SIAEJ)

Japan 100%

Eagle Services Asia(ESA)

Singapore Aero Engine Services (SAESL)

JV with GE(to be incorporated)

Asian Surface Technologies(AST)

Component Aerospace Singapore (CAS)

Singapore 49%Singapore 50%

Singapore 49% Singapore 39.2%

Singapore 46.4%

Singapore 24.5%

Turbine Coating Services(TCS)

SIA Engineering (Philippines)(SIAEP)

Philippines 65%

Boeing Asia Pacific Aviation Services(BAPAS)

Singapore 49%

Aviation Partnership (Philippines)

(APPC)

Philippines 51%

Singapore 65%

Heavy Maintenance Singapore Services (HMS

Services)

Fuel Accessory Service Technologies

(FAST)

Safran Landing Systems Services Singapore

(SLSSS)

Goodrich Aerostructures Service Center-Asia (GASCA)

JAMCO AeroDesign & Engineering

(JADE)

Safran Electronics & Defense Services Asia (SEA)

Singapore 45%

Singapore 49%

Singapore 40%

Singapore 40%

Singapore 40%

Moog Aircraft Services Asia(MASA)

Singapore 49%

Aerospace Component Engineering Services (ACES)

Panasonic Avionics Services Singapore

(PACSS)

Singapore 51%

Singapore 42.5%

Additive Flight Solutions(AFS)

Singapore 60%

Singapore Aero Support Services(SASS)

Singapore 100%

Thailand 49%

Line Maintenance Partnership (Thailand)

(LMPT)

25 JVs Across 8 CountriesTotal Revenue in 1H FY19/20: S$2.7B

Strengthening our JV Portfolio

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• Line Maintenance JV with NokScoot incorporated on 10 July 2019

• Shareholding: 51% by NokScoot, 49% by SIAEC

• Target to commence operations in 2H FY19/20 in Dong Mueang International Airport

Incorporated Line Maintenance Partnership (Thailand)

New JVs in Gestation Period

(JV to be incorporated)

Engine & ComponentAirframe Overhaul & Line Maintenance

Investments in New Capabilities – Eagle Services Asia

• Built up GP7200 and GTF engine capabilities to rejuvenate growth

• Invested nearly US$85 million to upgrade the facility, including advanced machinery, and

to train employees to perform new engine work

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Developed an Operations & Technology Capability Roadmap (OTCR) in 2018

The Innovation & Technology Group was established in 2016 to spearhead innovation drive with a commitment to invest up to $50 million over 5 years

Digital Collaboration• Improve information accessibility and enhance

connectivity on the go

Machine Vision• Enable automated inspection, analysis and continuous monitoring • Video analytics for safety, security and surveillance

Smart Control Centre• Industry 4.0 to improve visibility of work processes

Automation & Robotics• Strengthen ability to optimize operations and conduct all

weather operations

Enhance Quality and Safety

Increase Efficiency

Develop New Products and Capabilities

Innovation and Technology

Innovation and Technology

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People are at the Core of Innovation- “Made in SIAEC” ideas showcased at Innovation Week 2019

Driving simulatorVR based on actual airport terrain with 35 training and test scenarios. Delivered in July 2019.

Brakes heat extraction systemA more efficient and cost effective way to cool brakes. Prototype testing in June 2019.

Fan cowl jigReduce storage footprint of fan cowls by 75%

Foldable radome transporter Reduce storage footprint

Innovation and Technology

ENHANCING SAFETY AND OPERATIONS

MOTORISED STEPS VR TRAINING

CHANGI AIRPORT ANNUAL SAFETY AWARDS Recognition for staff from the airport community who have contributed towards improving airport safety

• FY17/18: - Gold award for our Aircraft

Towing Simulator

• FY18/19:- Best Safety Exhibition Partner award- Gold award for our VR Training project- Bronze award for our Motorised Steps project

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Transformation

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Transformation

Process changes are brought about by the implemented

initiatives

Operational improvement

Financial improvement

Our Transformation efforts are translating into improvements in our operating

performance through reduced costs and better manpower utilization. In addition,

our digital initiatives are gaining traction Company-wide. These efforts better

position us to meet the ongoing challenges of an uncertain and difficult operating

environment.

We will continue to strengthen our portfolio of strategic joint ventures and alliances

to sustain our growth as a trusted partner in global MRO.

Outlook

End of Performance Review